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Investors who purchased Inspired Healthcare Capital (IHC) funds or Delaware Statutory Trusts (DSTs) may have valid claims to recover their losses. Rather than wait at the back of the line in lengthy bankruptcy proceedings, you may be able to take action directly against the brokerage firm that recommended and sold the investment to you. Kaplan Rothstein Prüss Peraza, P.A. (KRP2) is currently investigating these high-commission sales on behalf of investors nationwide.
Call (888) 578-6255 or request a free, confidential case review.
Inspired Healthcare Capital (“IHC”) was a real estate sponsor that raised money from investors to buy and operate senior living and assisted living properties around the country. Rather than selling shares on a public exchange, IHC raised capital through private offerings. These came in two main forms: Regulation D private placements and Delaware Statutory Trusts, or DSTs.
A private placement is an investment sold to a limited group of investors without the full public reporting that comes with a listed stock. A DST is a legal structure that lets a group of investors co-own income-producing real estate, and it is often used by people completing a 1031 exchange to defer taxes on the sale of other property. Both were marketed as ways to earn steady income from senior housing real estate.
By most accounts, IHC raised roughly $1.2 billion across more than 30 senior living properties and a web of more than 160 affiliated entities. Its operating arm, Volante Senior Living, ran the day-to-day management of the properties. For many investors, especially retirees, these deals were presented as a dependable source of monthly income and capital preservation. That framing is central to why so many investors may feel misled.
The trouble started to become visible to investors in the summer of 2025.
In July 2025, IHC suspended its investment offerings and halted distributions to investors while it was under regulatory review by the Securities and Exchange Commission (SEC). Around the same time, it shut down Volante Senior Living, its property management operation. For investors who were counting on those monthly checks, the income simply stopped.
In September 2025, a lender affiliated with the broker-dealer Emerson Equity sued IHC and its chief executive, alleging that the company had misrepresented its financial condition and concealed severe financial distress. Then, on February 2, 2026, Inspired Healthcare Capital filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Northern District of Texas, under Case No. 26-90004. Court filings reported liabilities somewhere between $1 billion and $10 billion and tens of thousands of creditors.
What a bankruptcy means to you: In a Chapter 11 reorganization, most individual investors are usually near the back of the line, and any recovery from the bankruptcy estate tends to be slow and uncertain. That reality is exactly why the second path, a claim against the brokerage firm that recommended the investment, can be a viable path to pursue.
Market risk is a reality of investing, but broker-dealers have a legal obligation to recommend products that realistically fit your financial situation. IHC funds and DSTs were illiquid, high-risk products carrying significant upfront commissions of up to 10 percent. Because these products locked up capital, they were often unsuitable for retirees seeking conservative, liquid investments and a stable income. If your advisor prioritized a massive commission over your financial security or failed to disclose the severe risks of the offering, you may have grounds for a claim.
When funds are illiquid, it means that your money is locked up and cannot be easily sold or cashed out. Investments like these are not suitable for every investor, and they are often a poor fit for retirees who need a stable income and access to their savings. Under FINRA rules and Regulation Best Interest, known as Reg BI, brokers and advisors are required to recommend only investments that are appropriate for a client’s age, goals, risk tolerance, and financial situation, and to disclose the real risks involved. Brokerage firms must act in customers’ best interest and not place their own financial interest ahead of the best interest of the customers.
When a firm falls short of those duties, investors may have grounds to pursue a claim. Potential grounds in matters like this can include:
– Recommending and selling unsuitable investments.
– Overconcentrating a client’s savings on one risky, illiquid product.
– Misrepresenting or omitting material risks.
– Failing to perform adequate due diligence on the product before selling it.
– Breaching a fiduciary duty to act in the client’s best interest.
Broker compensation is part of the picture. Reports indicate that these products paid brokers upfront commissions in the range of roughly six to 10 percent or more, with industry coverage pointing to more than $100 million in total commissions across the IHC deals. High commissions can create an incentive to sell a product regardless of whether it truly fits the client, which is one of the reasons regulators scrutinize these offerings so closely.
The most important point to understand is this: a claim against the brokerage firm that sold you the investment is separate from the IHC bankruptcy. You generally do not have to wait for the bankruptcy proceedings to play out to pursue recovery from the firm that put you into the investment.
Many investors did not buy IHC directly from IHC. A financial advisor at a brokerage firm sold the product to many investors.
Emerson Equity LLC served as the managing broker-dealer for many of the IHC offerings, and news reporting indicates that a range of independent firms sold the products to their clients. Firms reported in connection with IHC sales include Newbridge Securities Corp., Concorde Investment Services, TCFG Wealth Management, Berthel Fisher & Company, Aurora Securities, 1031 Securities, Great Point Capital, and Realized Financial. In April 2026, the bankruptcy court ordered Emerson Equity to produce internal documents related to the offerings.
If one of these firms, or another brokerage, recommended IHC to you, that firm may bear responsibility for the recommendation. We describe these firms here based on public reporting and court filings. Nothing on this page should be read as a finding that any particular firm committed wrongdoing. Those questions are decided case by case, based on the facts of each investor’s situation.
Investors who bought IHC through a Delaware Statutory Trust face an added layer of difficulty, and this group is often overlooked.
Many DST investors got there through a 1031 exchange, a tax strategy that lets you defer capital gains taxes when you sell one investment property and roll the proceeds into another. IHC DSTs, with names tied to individual senior living properties in cities such as Reno and Cinnaminson, were marketed as passive, income-producing real estate that also preserved that tax deferral. For someone who had just sold a rental property or a family building, it was pitched as a way to keep the income flowing without the headaches of being a landlord, and without an immediate tax bill.
When those DSTs run into trouble, the sting is threefold. The investment has lost value, the money is locked up and hard to reach, and there can be tax consequences tied to the original exchange. Several individual IHC-related DSTs are now caught up in the bankruptcy proceedings as well.
DST investors may still have options. If a brokerage firm recommended a 1031 exchange into an IHC DST that was not suitable for you and your financial situation, or failed to disclose the risks, you may be able to pursue a claim against that firm in the same way a fund investor can.
If you are wondering what pursuing a claim looks like, here is the short version.
Most disputes between investors and brokerage firms are not resolved in a courtroom. When you opened your brokerage account, you almost certainly signed an agreement requiring disputes to be handled through arbitration administered by FINRA, the Financial Industry Regulatory Authority. FINRA arbitration is a private process in which a neutral panel of arbitrators hears the evidence and decides whether the firm owes the investor money.
For most investors, the process is more streamlined than a traditional lawsuit. A claim is filed describing what happened and what the brokerage firm allegedly did wrong, both sides exchange documents and information, and if the case is not settled over the ensuing months, the case is presented (tried) to the arbitration panel. These cases are often resolved in roughly 12 to 18 months, though timelines can vary.
Timing matters. FINRA has an eligibility rule that generally requires claims to be brought within six years of the events in question, and other shorter legal deadlines can apply as well. When those timeframes expire you could be prohibited from pursuing a claim. As such, it is important to understand your options sooner rather than later.
Kaplan Rothstein Prüss Peraza, P.A. represents investors, not brokerage firms. Our attorneys, including Jeffrey Kaplan, have spent decades representing investors in securities arbitration and investment fraud matters against broker-dealers across the country, including many cases involving private placements, Regulation D offerings, and DSTs.
We review how the investment was sold to you, whether it was suitable given your circumstances, and what the recommending firm knew or should have known about the investment. Then we explain your options in plain language, with no pressure.
If you lost money in an IHC fund or DST, we invite you to contact us for a free, confidential, no-obligation review of your situation.
We represent investors on a contingency-fee basis. We only are paid if and when we recover money for you and our fee is a percentage of the recovery.
What happened to Inspired Healthcare Capital?
IHC aggressively marketed private placement funds and DSTs tied to senior living facilities. Following a sudden halt to investor distributions and an SEC review in mid-2025, the company filed for Chapter 11 bankruptcy in Texas in February 2026, leaving thousands of investors holding devalued, illiquid assets.
Can I recover my Inspired Healthcare Capital losses?
Yes, but your strongest path is likely not through the bankruptcy court. If a broker or financial advisor recommended this high-risk investment when it was unsuitable for your financial profile, you can pursue a claim directly against their firm for failing to protect your interests.
Should I recover through the bankruptcy case or file a claim against my broker?
Pursuing the brokerage firm is entirely separate from the bankruptcy proceedings, and you typically do not need to wait. Bankruptcy payouts for individual investors, if payouts are even made, are notoriously slow and often amount to very little. A FINRA arbitration claim targets the brokerage firm’s liability, offering a more direct route to potential recovery.
What is FINRA arbitration, and how long does it take?
FINRA arbitration is the private dispute resolution process mandated by almost all brokerage account agreements. Rather than enduring a lengthy public court battle, your case is heard by a neutral panel of arbitrators. Most of these claims are resolved within 12 to 18 months.
How much does it cost to hire an investment fraud lawyer?
KRP2 handles these cases on a contingency-fee basis. This means you pay no hourly fees. The firm only collects an attorney’s fee if money is successfully recovered for you.
I rolled a 1031 exchange into an IHC DST. Do I still have options?
Yes. If an advisor pitched an IHC Delaware Statutory Trust as a safe, passive way to defer capital gains taxes but failed to disclose all material risks, that firm may be liable. DST investors have the same right to pursue FINRA claims as traditional fund investors.
Which broker-dealers sold Inspired Healthcare Capital?
Emerson Equity acted as the primary managing broker-dealer, but the products were pushed by a wide network of independent firms. Public reports indicate that the following are among the brokerage firms that may have sold IHC investments: Newbridge Securities Corp., Concorde Investment Services, TCFG Wealth Management, Berthel Fisher & Company, Aurora Securities, 1031 Securities, Great Point Capital, and Realized Financial.
Is there a deadline to file a claim against my broker?
Yes. FINRA imposes a strict eligibility rule generally requiring claims to be filed within six years of the occurrence or event giving rise to your claim. Depending on your specific circumstances and state laws, other shorter legal statutes of limitations may close your window of opportunity even sooner.
What should I bring to a free case review?
Gather any brokerage account statements showing the IHC purchase, the initial subscription documents you signed, marketing materials, and any emails or notes relating to the broker’s representations about the nature or risks of the investment. If you are missing paperwork, KRP2 can still evaluate your situation and discuss your options during the consultation.
If you lost money in an Inspired Healthcare Capital fund or DST, you may be able to pursue recovery from the brokerage firm that recommended and sold the investment to you. Kaplan Rothstein Prüss Peraza, P.A. offers a free, confidential, no-obligation case review. Call (888) 578-6255 or complete our online form, and one of our securities attorneys will review your situation and explain your options.
Call (888) 578-6255 or request your free, confidential case review today.
Our objective is to protect your interests, resolve your legal dispute, and achieve your goals as quickly and efficiently as possible.
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